Shark Karus in business with jailed accountant

Published on Tuesday 6 October 2009 10:01

A DISGRACED solicitor, who has been jailed for embezzling £400,000 from a pensioner's estate, was formerly the business partner of a finance director convicted of his own £100,000 fraud.

Michael Karus, of Gloucester Place, Edinburgh, was sentenced to three-and-a-half years for embezzling more than 400,000 from an elderly woman's estate at Edinburgh Sheriff Court yesterday.

Today, the News can reveal that he was formerly business partners with David Logan, who was jailed for two years in 2005 for embezzling 100,000 from accountancy firm PricewaterhouseCoopers in Edinburgh when working there as a finance director.

Karus had pleaded guilty previously to embezzling 413,052.81 from the estate of Edith Hampton between 5 March and 7 May, 2003. The 48-year-old, who has boasted of being a "shark", was told by Sheriff Derrick McIntyre he had committed a "grave breach of trust".

Another former business associate today said he hoped more charges against Karus would follow. He said: "He's plausible and preys on weakness. If he knew you were having an affair, doing some dodgy deal, struggling financially, or simply having a hard time, then he would befriend you, manipulate you, exploit you and leave you in the gutter. And he'd enjoy doing it.

"He'd never do his dirty work himself. He's a twisted coward.

"Credit to the police and Crown for having the patience and determination to put this guy away. He's committed a lot more devious and dirty acts and hopefully there will be more charges to come."

Karus had been hired by Ms Hampton to draw up a will leaving her fortune to the Cancer Research UK charity, which was confirmed in 1992. But the Edinburgh pensioner, who passed away aged 89 in March 2003, changed her will seven years later to leave the money to June Pirie, her cousin's daughter.

Following her death, Karus transferred the money into his personal account but bosses at Cancer Research contacted him repeatedly from 2003 onwards to ask why the windfall had not been paid. Karus finally told them a second will leaving the money to Mrs Pirie had emerged, which he was going to authenticate.

Charity bosses finally contacted police in 2007 after the second will was never registered.

Karus only registered the newer will in April 2008, three weeks after appearing at Edinburgh Sheriff Court on petition. The police obtained a copy and the hand-writing confirmed Mrs Pirie as beneficiary.

Karus had moved 115,000 into Edinburgh Metropolitan Properties, of which he was a director; 82,000 to Karus & Co pension fund; 60,000 to a judicial factor to clear the law firm's debts and between 3,000 and 5,000 for his credit card debts.

Karus told HM Customs and Excise and Mrs Pirie, when he met her at Miss Hampton's funeral, that all the proceeds of the estate had gone to Cancer Research.

Defence counsel, Ian Duguid QC said Karus had moved the funds to stop them being "swallowed up" by the judicial factor.

Mr Duguid added that Karus had been in the middle of an acrimonious divorce and his mother was suffering from dementia. His personal difficulties had "clouded his judgement".